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Borgata Increases Market Share in Atlantic City

Friday October 31,2014 : BORGATA INCREASES ITS MARKET SHARE IN ATLANTIC CITY

Closures bring better business for survivors in a troubled market.

Reduced competition following land casino closures in Atlantic City may be a factor in the increased revenues posted this week by Boyd Gaming for its Borgata interests.

The Borgata’s revenue increased by nearly 5 percent to $209.9 million in the third quarter, increasing its share of Atlantic City’s gambling market to 24 percent.

$6.1 million of the revenues came from the Borgata's market-leading online gambling operations in New Jersey.

EBITDA of $56.9 million was up by ovr 22 percent compared to the same period in 2013 as the operation benefited from a tax settlement with the city of Atlantic City that contributed $8.1 million to earnings.

Parent group Boyd claims that the improvements started to show before the closings of three Atlantic City competitors this summer

“In September, we began more active efforts to attract some of these customers to our database,” a spokesman said.

“We have gained some customers, but we’re not going to overspend to do it. We would like to see these properties stay open, but if they close and their customers are available, we’ll certainly try to attract them to the Borgata.”

Four of Atlantic City’s 12 casinos have closed so far this year, including three — the Showboat, Revel and Trump Plaza — in a two week period during the summer.

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